Sonoco-Alcore to Increase Paperboard Prices in the EMEA Region

Sonoco-Alcore S.a.r.l., a subsidiary of Sonoco (NYSE:SON), announced a price increase of €50 per tonne on all recycled paperboard grades in the EMEA regions effective September 1, 2021.

Rhea-AI Summary

Sonoco-Alcore S.a.r.l., a subsidiary of Sonoco (NYSE:SON), announced a price increase of €50 per tonne on all recycled paperboard grades in the EMEA regions effective September 1, 2021. This decision is attributed to ongoing inflationary pressures affecting costs related to energy, waste paper, chemicals, packaging, and freight. Division Vice President Phil Woolley noted that despite efforts to mitigate these costs, they must now be passed on to the market. Further price increases may be considered before year-end as market conditions evolve.

Positive

• Price increase of €50/tonne indicates strong demand for recycled paperboard.
• The decision reflects proactive management in response to rising costs.

Negative

• Continued inflationary pressures may affect profit margins.
• Potential for further price increases could impact customer relationships.

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News Market Reaction – SON

In the trading session that priced this news, SON declined 0.43%, reflecting a mild negative market reaction.

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BRUSSELS, Belgium, Aug. 26, 2021 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. announced today that due to inflationary pressures it will raise prices by €50 / tonne on all recycled paperboard grades sold in the Company’s EMEA regions. The increase is in direct response to the continued escalation of its cost base and will be effective for all shipments made on or after the 1^st September 2021.

“Our business continues to experience unprecedented cost inflation across many elements of the business including energy, waste paper, chemicals, packaging and freight. Whilst we have made every effort to mitigate these price pressures, we now have no choice but to pass the increases onto the market. We will continue to monitor market trends over the next quarter and will react accordingly. At this point we cannot rule out further increases before year-end,” said Phil Woolley, Division Vice President – Paper Europe.

Sonoco-Alcore S.a.r.l. is wholly owned by Sonoco (NYSE:SON) and operates 24 tube and core plants and five paperboard mills in Europe.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the reason for Sonoco's price increase on recycled paperboard?

Sonoco-Alcore cited inflationary pressures affecting costs such as energy, waste paper, chemicals, packaging, and freight.

When will the new prices for recycled paperboard take effect?

The price increase will be effective for all shipments made on or after September 1, 2021.

What is the amount of the price increase for recycled paperboard by Sonoco?

The price increase is €50 per tonne.

Is Sonoco considering further price increases in the future?

Yes, Sonoco indicated that further increases cannot be ruled out before year-end.

Who is the parent company of Sonoco-Alcore?

Sonoco-Alcore is wholly owned by Sonoco.